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  • September 28, 2020

    Rengo Concludes a Positive Impact Finance Syndicated Loan Agreement

    Rengo Co., Ltd. announces that Rengo has concluded a syndicated loan agreement with Sumitomo Mitsui Trust Bank, Ltd. (“SuMi TRUST Bank”) for Positive Impact Finance (with unspecified use of funds) (“this agreement”) in line with the Principles  for Positive Impact Finance(*1) released by the United Nations Environmental Programme Finance Initiative (“UNEP FI”)(*2).
    Positive Impact Finance is intended to support corporations’ activities on an ongoing basis, with the impacts (both positive and negative) of the activities on the environment, society and the economy being comprehensively analyzed and evaluated. The most notable feature of Positive Impact Finance is that the degree of contribution to achievement of corporations’ Sustainable Development Goals (SDGs) is used as evaluation indicators and the information publicly disclosed.

    Overview of This Agreement

    Date of Agreement September 28, 2020
    Arranger/Agent SuMi TRUST Bank
    Sum 55 billion yen
    Use of Funds Working capital
    Lender
    (in order of the Japanese
    kana syllabary)
    The Awa Bank, Ltd., The Iyo Bank, Ltd., The Oita Bank, Ltd.,
    The Kagoshima Bank, Ltd., The Kiyo Bank, Ltd.,
    The Bank of Kyoto Ltd., The Gunma Bank, Ltd.,
    The Shizuoka Bank, Ltd., The 77 Bank, Ltd., The Joyo Bank, Ltd.,
    The Chiba Bank, Ltd., The Nanto Bank, Ltd., The Hachijuni Bank, Ltd.,
    The Fukui Bank, Ltd., The Mie Bank, Ltd., and SuMi TRUST Bank
    The Rengo Group defines itself as a “General Packaging Industry (GPI) Rengo” that provides innovative solutions to fulfill all the packaging needs of a wide array of industries, mainly in its six core business fields of Paperboard, Corrugated Packaging, Folding Cartons, Flexible Packaging, Heavy Duty Packaging, and Overseas Business. Rengo sets “Less is more.” as the key concept, and contributes to the realization of a sustainable society by working to develop packaging that generates more value using less resources.

    Rengo's initiatives listed below have been assessed both qualitatively and quantitatively with respect to the following themes as activities with particular impact on achievement of SDGs.

    The Rengo Group advocates the concept of “Less is more.”, which consists of the three frameworks of “Less energy consumption,” “Less carbon emissions,” and “High quality products with more value-added.” It has been proactively promoting sustainability activities and advancing initiatives for achieving SDGs through its business activities(*3).
    Theme Content Goal and indicator (KPI) SDGs
    Resource and
    energy saving
    • ・Effective use of resources
    • ・Reducing waste
    • ・Creation of recycling oriented society
    • 1.Keeping recovered paper utilization ratio 97% or more
    • 2.Keeping material recycling rate 98% or more

    アイコン

    Global warming
    countermeasures
    • ・CO2 reduction
    • ・Increase the use of renewable energy
    • 1.CO2 reduction by FY2030 of 26% compared to FY2013
    • 2.Increase renewable energy rate to 25% by FY2030

    アイコン

    Development of
    next-generation
    technology and
    products
    • ・Development of environmentally friendly products
    • 1.Advancing the production of lightweight corrugated board: Reduction of average basis weight of corrugated board by FY2020 of 11.5% compared to FY2004 (The target value for FY2021 and beyond will be determined later)
    • 2.Development and offering of biodegradable materials: Biodegradable cellulose beads, used as alternatives to plastics, are produced 200 tons annually by FY2030.

    アイコン

    In concluding this agreement, a third party opinion(*4) has been obtained from Japan Credit Rating Agency, Ltd. regarding compliance of the procedures pertaining to the evaluation of this agreement with the Principles for Positive Impact Finance, as well as the rationality of the evaluation indicators.
    The Rengo Group, as the world's number one “General Packaging Industry,” will continue to design the future and make ceaseless efforts to realize a sustainable society.

    • (*1) The Principles for Positive Impact Finance
      The Principles for Positive Impact Finance was developed by UNEP FI in January 2017 as a financial framework for achieving the SDGs. Companies disclose the level of contributions to achieving SDGs through KPIs. Banks then provide funding by evaluating the positive impact observed from these KPIs that is intended to guide the borrowers to increase positive impact and reduce negative impact. The lending bank, as a responsible financial institution, will check if the impact is continuing or not by monitoring the indicators.

    • (*2) The United Nations Environment Programme Finance Initiative (UNEP FI)
      The United Nations Environment Programme (UNEP) is an executive body for implementing the “Declaration of the United Nations Conference on the Human Environment” and the “Action Plan for the Human Environment”, established in 1972 as a subsidiary body to the United Nations system. UNEP FI represents a broad as well as close partnership between UNEP and more than 200 global financial institutions. Since its establishment in 1992, UNEP FI has been working in concert with financial institutions, policy/regulatory authorities to transform itself into a financial system that integrates economic development and ESG (environment, social and governance) considerations.

    • (*3) For Rengo's website, please visit: >>https://www.rengo.co.jp/english/

    • (*4) For independent opinions from Japan Credit Rating Agency, Ltd., please visit: >>https://www.jcr.co.jp/en/